Rockwell Automation Inc (ROK)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,561,300 | 2,862,900 | 2,867,800 | 3,464,600 | 1,974,700 |
| Total stockholders’ equity | US$ in thousands | 3,498,300 | 3,561,600 | 2,725,600 | 2,389,600 | 1,027,800 |
| Debt-to-capital ratio | 0.42 | 0.45 | 0.51 | 0.59 | 0.66 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,561,300K ÷ ($2,561,300K + $3,498,300K)
= 0.42
The debt-to-capital ratio of Rockwell Automation Inc has shown a declining trend over the past five years, indicating an improving financial position in terms of leverage. The ratio decreased from 0.66 in 2020 to 0.42 in 2024, reflecting a significant reduction in the proportion of debt relative to the total capital employed by the company. This trend suggests that Rockwell Automation has been effectively managing its debt levels and/or increasing its capital base. A lower debt-to-capital ratio indicates less reliance on debt financing, which may reduce financial risk and enhance the company's ability to weather economic downturns or invest in growth opportunities. Overall, the decreasing trend in the debt-to-capital ratio is a positive signal for Rockwell Automation's financial health and stability.
Peer comparison
Sep 30, 2024